Breaking Down Global Medical REIT Inc. (GMRE) Financial Health: Key Insights for Investors

You're looking at Global Medical REIT Inc. (GMRE) right now, trying to square the strong operational data with the headline net loss, and honestly, it's a classic real estate investment trust (REIT) puzzle. The direct takeaway is this: GMRE's core cash flow is solid, but you have to understand the non-cash hits. Look at the Q3 2025 results released in November: Funds From Operations (FFO)-which is the key cash-flow metric for REITs-hit a healthy $14.5 million, or $1.00 per share, showing a 4% year-over-year increase on a per-share basis, and the portfolio is still nearly full with 95.2% leased occupancy. But, the company posted a net loss of $6.0 million, or $0.45 per diluted share, primarily because of a single $6.3 million impairment charge on one facility; that's a one-time accounting risk, not a systemic cash-flow problem, but it defintely matters. We need to map that balance sheet risk-like the 1.43 debt-to-equity ratio-against the opportunity, where analysts see a Moderate Buy consensus and a potential 29.61% upside to the average price target of $41.50. So, let's dig into what all those numbers really mean for your next move on GMRE.

Revenue Analysis

You need a clear picture of where Global Medical REIT Inc. (GMRE) makes its money, and the takeaway is simple: it's a pure-play, net-lease operation. The vast majority of revenue comes from stable, long-term rental agreements with healthcare providers, but the growth rate is slowing, so you must watch their acquisition strategy closely.

For the full 2025 fiscal year, consensus analyst estimates project Global Medical REIT Inc.'s total revenue to be around $147.86 million. This is an improvement, but it shows the challenge of scaling a Real Estate Investment Trust (REIT) in a high-interest-rate environment. The trailing twelve months (TTM) revenue ending September 30, 2025, was already strong at approximately $144.83 million.

Breakdown of Primary Revenue Sources

Global Medical REIT Inc.'s revenue is almost entirely derived from rental revenue, specifically from its portfolio of healthcare facilities leased under a net-lease structure. This means the tenants-physician groups and regional/national healthcare systems-are responsible for most property expenses, like taxes, insurance, and maintenance. This structure provides a predictable, stable cash flow stream. As of September 30, 2025, the portfolio's annualized base rent was $118.4 million. That's a huge number.

The company's portfolio is diversified across the US, but the revenue stream itself is highly concentrated in one category: rent. The underlying stability comes from the types of properties they own and the nature of healthcare demand. If you want to dive deeper into their long-term focus, check out their Mission Statement, Vision, & Core Values of Global Medical REIT Inc. (GMRE).

Year-over-Year Revenue Growth Rate

The near-term growth has been solid, but the forward-looking picture is more modest. The year-over-year revenue growth rate for the trailing twelve months ending Q3 2025 was 6.04%. That's decent, but analysts are projecting a forward growth rate of only 2.9% per year. Here's the quick math on the recent performance:

• Q3 2025 Rental Revenue: $37.0 million
• Year-over-Year Q3 Rental Revenue Increase: 8.4%
• Full-Year 2024 Revenue: $138.76 million

Analysis of Significant Revenue Changes

The primary engine for 2025's revenue growth was strategic portfolio expansion. Specifically, the Q3 2025 revenue bump was mainly due to the impact of acquisitions completed after September 30, 2024. For example, Global Medical REIT Inc. completed the acquisition of a five-property medical portfolio for a total of $69.6 million in the first half of 2025. This is how a REIT grows its top line: buy more properties with strong tenants.

To be fair, they also completed two property dispositions in Q3 2025, generating gross proceeds of $3.8 million, which slightly offsets the growth. This 'asset recycling'-selling older or non-core assets to fund new, higher-quality ones-is a defintely necessary part of managing a mature REIT portfolio. The overall portfolio leased occupancy remains high at 95.2% as of September 30, 2025, which is the critical metric telling you their rental income is secure.

Revenue Contribution by Segment (Property Type)

While the company does not typically break out revenue by property type in its summary financials, the portfolio composition gives you the segment contribution picture. The revenue stability is rooted in the diversity of their facilities, which include Medical Office Buildings (MOBs), Inpatient Rehabilitation Facilities (IRFs), and Surgical Hospitals. The key is that the revenue stream is secured by long-term leases with a weighted average lease term of 5.3 years and average annual rent escalations of 2.1%.

Next Step: Focus your attention on the upcoming 2026 guidance to see if management's projected revenue growth aligns with the analyst's more conservative 2.9% forecast. Finance: Draft a sensitivity analysis on the impact of a 1% change in occupancy on total revenue by month-end.

Profitability Metrics

You need to know if Global Medical REIT Inc. (GMRE) is actually making money, or if its operational strength is being eaten up by financing costs. The short answer is that while the core property operations are highly efficient, the bottom-line net profit is under severe pressure from non-cash charges and a rising cost of debt.

For the trailing twelve months (TTM) ending September 30, 2025, Global Medical REIT Inc. reported a TTM revenue of approximately $144.5 million, with a net income of only about $2.5 million. This translates to a GAAP net profit margin of only about 1.73%, which is extremely thin. In fact, the most recent quarter, Q3 2025, saw a net loss of $6.0 million, primarily due to a $6.3 million impairment charge on an unoccupied facility, which is a key risk to defintely watch.

Margin Analysis: Core Efficiency vs. Bottom-Line Pressure

The profitability picture changes dramatically when you look at the core real estate operations, before accounting for non-cash items like depreciation and amortization, and non-operating costs like interest. This is why Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) are the standard for Real Estate Investment Trusts (REITs).

Here is a snapshot of Global Medical REIT Inc.'s TTM margins as of Q3 2025, showing the strong operational foundation but weak final profitability:

The 78.51% Gross Margin is a clear sign of operational strength, reflecting the stability of their triple-net lease model (where the tenant pays most operating expenses). This is a high-quality margin, especially when compared to the senior housing subsector, which often struggles to reach a 30% margin.

Trends and Industry Comparison

The trend shows a recent dip in GAAP net profitability. Global Medical REIT Inc. swung from a net income of $1.8 million in Q3 2024 to the Q3 2025 net loss of $6.0 million. This is a direct consequence of higher non-operating costs-specifically, interest expense rose to $8.2 million in Q3 2025 from $7.2 million in the prior year, driven by higher average borrowings and interest rates.

When you compare the TTM Net Profit Margin of 1.73% to a peer like American Healthcare REIT, which had a TTM Net Profit Margin of 1.23% as of September 30, 2025, Global Medical REIT Inc. is competitive, but both are struggling to convert high rental revenue into meaningful GAAP net income. The entire U.S. Health Care REIT industry has seen earnings decline by 39% annually over the last three years, despite a 14% annual revenue growth, showing this net profit pressure is a sector-wide issue. You need to focus on the core operational metrics like Same-Store Cash Net Operating Income (NOI).

• Same-Store Cash NOI: Grew 2.7% year-over-year in Q3 2025.
• Occupancy: Stable at 95.2% as of September 30, 2025.
• Action: The real risk is the cost of capital, so management is focused on refinancing credit facility obligations by Q4 2025.

The high Gross Margin confirms excellent property-level cost management, but the low Net Margin tells you the company's financial leverage (debt) and non-cash charges are the primary drag on GAAP earnings. For a deeper understanding of the company's strategic focus, you can review the Mission Statement, Vision, & Core Values of Global Medical REIT Inc. (GMRE).

Debt vs. Equity Structure

You're looking at Global Medical REIT Inc. (GMRE)'s capital structure, and the key takeaway is clear: the company is significantly leveraged, but management has just taken a critical step to de-risk its near-term debt maturity schedule. This is a classic REIT balancing act between tax-advantaged debt and the stability of equity.

As of the third quarter of 2025, Global Medical REIT Inc. reported a Total Gross Debt of approximately $712.9 million. This debt load is substantial compared to the company's Total Stockholders Equity, which stood around $485.3 million as of September 30, 2025. The balance sheet shows that debt is the primary fuel for their growth and property acquisitions.

Here's the quick math on that leverage:

• Total Gross Debt (Q3 2025): $712.9 million
• Total Stockholders Equity (Q3 2025): $485.3 million
• Debt-to-Equity Ratio: 1.43 (or 142.96%)

A Debt-to-Equity (D/E) ratio of 1.43 is high, especially when you compare it to the broader Health Care REIT industry average, which is closer to 0.87. Honestly, a D/E over 1.0 means the company is funding more of its assets with debt than with shareholder capital (equity). This strategy can boost returns on equity (ROE) in good times, but it definitely amplifies risk if property values drop or interest rates rise. It's a high-wire act.

The good news is the recent, crucial refinancing activity. Global Medical REIT Inc. amended and restated its credit facility in October 2025, a move that fundamentally changed their debt profile. The weighted average term of the company's debt dramatically increased from a concerning 1.3 years to a much safer 4.4 years. This action pushes major maturity cliffs well into the future, buying the company time to navigate a tough interest rate environment.

The refinancing specifically addressed the upcoming maturities by:

• Extending the $400 million revolver component to October 2029.
• Dividing the $350 million Term Loan A into three tranches, with maturities ranging from October 2029 to April 2031.
• Entering into forward starting interest rate swaps to hedge the SOFR component, resulting in a weighted average effective interest rate of approximately 4.8% on that new debt.

This shows a clear preference for debt financing over dilutive equity issuance, especially given the common stock's valuation challenges. The management team is actively managing their liability side, using debt strategically to fund their net-lease medical portfolio, but they are also acutely aware of the risk, hence the aggressive maturity extension. For a deeper dive into who is betting on this strategy, you should check out Exploring Global Medical REIT Inc. (GMRE) Investor Profile: Who's Buying and Why?

What this estimate hides, still, is the impact of higher interest rates on future debt, even with the swaps. The company is leaning on debt, but they are now much better positioned to handle the next few years without a major liquidity crunch.

Liquidity and Solvency

When you look at a Real Estate Investment Trust (REIT) like Global Medical REIT Inc. (GMRE), liquidity-the ability to meet short-term obligations-is defintely a critical first check. For GMRE, the picture is generally stable on a short-term basis, but the long-term capital structure shows a dependency on the credit markets.

The core liquidity positions, measured by the Current Ratio and Quick Ratio, are healthy. The Current Ratio, which measures current assets against current liabilities, stands at a strong 1.91. This means GMRE has nearly two dollars in short-term assets for every one dollar in short-term debt. The Quick Ratio, which excludes less liquid assets like inventory (though REITs have little), is also robust at 1.71. This tells me the company can easily cover its immediate bills without having to rush to sell properties.

• Current Ratio: 1.91 (Strong short-term coverage).
• Quick Ratio: 1.71 (High-quality, immediate liquidity).
• Working Capital: $27.32 million (A positive buffer).

The analysis of working capital trends confirms this strength. The positive working capital of approximately $27.32 million as of the latest reporting period indicates a comfortable buffer. You want to see this number positive; a negative figure can signal a need for urgent financing. For a REIT, which often carries a low working capital due to the nature of its assets, this is a solid position. Here's the quick math: Current Assets of $57.5 million less Current Liabilities of $30.1 million yields a strong liquidity cushion.

Cash Flow: Where the Money Moves

Looking at the cash flow statement tells the real story of how a company funds its operations, growth, and dividends. The trends for Global Medical REIT Inc. (GMRE) through the first nine months of 2025 show a clear strategy of portfolio optimization and growth, which has required significant capital deployment.

Net cash provided by operating activities (CFO) is the lifeblood of a REIT. The most recent annualized figure is approximately $51,977,000. This is the cash generated from rents and operations before any property sales or debt actions. This consistent operating cash flow is what supports the dividend and covers interest payments, which is a major strength.

The investing and financing activities for the nine months ended September 30, 2025, reveal a dynamic capital allocation strategy. You can see a substantial increase in investment activity, likely due to acquisitions, alongside a shift in financing: The company used $67,152,000 in net cash for investing activities, a sharp increase from the comparable prior-year period, reflecting their strategic push for portfolio expansion. This was funded, in part, by a net cash inflow from financing activities of $16,073,000, a significant swing from the prior year's net outflow. This shift is primarily driven by utilizing their credit facility to fuel property acquisitions, a common but important point to watch. For a deeper dive into who is buying into this strategy, check out Exploring Global Medical REIT Inc. (GMRE) Investor Profile: Who's Buying and Why?

The potential liquidity concern isn't about the short-term bills; it's about the capital structure. While the Current Ratio is excellent, the reliance on the credit facility for funding significant investment activities means the company is exposed to interest rate risk and refinancing risk. The company has a debt-to-equity ratio of 140.3%, which is high and something you need to monitor closely, especially in the current interest rate environment. Still, the consistent operating cash flow provides a good foundation for managing that debt load.

Valuation Analysis

You want to know if Global Medical REIT Inc. (GMRE) is overvalued or undervalued right now, and the short answer, based on the latest November 2025 data, is that analysts see a clear upside, suggesting it's undervalued. The consensus price target of $41.50 implies a significant upside of over 33% from the recent trading price around $32.11.

Here's the quick math on the key valuation multiples. For a real estate investment trust (REIT), the Price-to-Earnings (P/E) ratio is often misleading because of depreciation rules. Still, Global Medical REIT Inc.'s trailing twelve-month (TTM) P/E ratio is an extremely high 93.0x, or even a negative -130.06x, which simply tells you GAAP earnings are not the right measure. You should focus more on the Price-to-Book (P/B) ratio and the Enterprise Value-to-EBITDA (EV/EBITDA) multiple, which are more relevant for asset-heavy companies.

• Price-to-Book (P/B): The P/B ratio is a low 1.06. This suggests the market is pricing the company's equity at just a small premium to its net asset value, which is defintely a value signal in the real estate sector.
• EV/EBITDA (2025 Estimate): The estimated Enterprise Value (EV) to Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for 2025 is around 11.4x. This is generally a reasonable multiple for a stable healthcare REIT, not screaming 'overvalued.'

Looking at the stock's movement over the last year gives you a clearer picture of investor sentiment. The stock has been volatile, hitting a 52-week high of $45.75 and a 52-week low of $29.05. As of November 2025, the stock is trading near the lower end of that range, which is why the one-year performance shows a painful decrease of about -27.50%. This drop is the core reason for the current 'undervalued' perception among analysts; the price has fallen faster than the underlying business value.

The dividend story is crucial for any REIT. Global Medical REIT Inc. offers a high dividend yield of approximately 11% based on a recent annualized dividend of $3.60 per share. However, the dividend payout ratio, when calculated against GAAP earnings, is an alarming -1,200.0%. This is not sustainable, but remember the GAAP issue. REITs are legally required to distribute most of their taxable income, so you need to check the payout ratio against Funds From Operations (FFO) or Adjusted FFO (AFFO), which are better cash flow proxies. The negative GAAP ratio is a risk, still, the high yield is a major draw for income investors. You can read more about the shareholder base in Exploring Global Medical REIT Inc. (GMRE) Investor Profile: Who's Buying and Why?

The Wall Street consensus is a 'Moderate Buy,' with a breakdown of ratings that leans positive: one Strong Buy, three Buy, two Hold, and one Sell. This mixed but generally bullish view, coupled with the stock trading near its 52-week low, suggests a potential turning point. The average price target of $41.50 is a strong signal that the Street believes the stock has significantly more room to run than it has to fall. Your next step should be to model the FFO payout ratio to confirm the dividend's safety.

Risk Factors

You're looking for the unvarnished truth about Global Medical REIT Inc. (GMRE)'s risk profile, and honestly, the Q3 2025 numbers show a mixed picture. While the healthcare real estate sector is strong, GMRE faces significant financial and tenant-specific headwinds. The direct takeaway is this: the company's rising leverage and near-term debt maturities are the most pressing financial risks you need to watch right now.

The company's financial health is under pressure, largely due to its debt load. As of September 30, 2025, consolidated debt outstanding was approximately $710 million. Here's the quick math: the Net Debt / Annualized Adjusted EBITDAre ratio, a key measure of leverage, climbed from 6.5x in Q3 2024 to a concerning 6.9x in Q3 2025. This higher leverage reduces the balance sheet capacity for new deals and makes the company more sensitive to economic shifts, which is defintely not ideal in a high-rate environment. The interest coverage ratio is also low at 1.1, raising a red flag about the ability to comfortably meet interest obligations.

• Short Debt Maturity: The weighted average remaining term on the total debt is short, at just 1.3 years as of September 30, 2025. This means a significant portion of debt will need to be refinanced in the near-term, and potentially at a higher weighted average interest rate than the current 4.06%.
• Asset Impairment: In Q3 2025, GMRE recognized a $6.3 million impairment charge on an investment property. This directly resulted in a net loss of $6.0 million for the quarter, signaling that certain assets are not generating sufficient returns to justify their carrying value. That's a clear threat to overall portfolio quality.

Tenant and operational risk also looms large. The bankruptcy filing of a major tenant, Prospect Medical Group, was a significant event, and while management is working on re-leasing strategies, tenant retention is a constant battle. The risk is concentrated: over 21% of the total Annualized Base Rent (ABR) is scheduled to expire across 2026 and 2027. Re-leasing that much space quickly and at favorable rates is a major operational challenge.

To be fair, management is taking clear actions to mitigate these risks. They are actively working on refinancing credit facility obligations, with plans to complete transactions by the fourth quarter of 2025. Plus, they've strategically structured their debt with 70% fixed-rate debt, which helps to shield against immediate interest rate hikes. They also completed a one-for-five reverse stock split and established a $50 million share repurchase program to manage capital structure. On the portfolio front, they are focused on capital recycling, with near-term dispositions in the range of $50 million to $100 million. They're selling off lower-performing assets to pay down debt and fund new acquisitions with better cap rates. The high occupancy rate of 95.2% as of September 30, 2025, is a strong foundation for this strategy. You can read more about the company's strategy and performance in Breaking Down Global Medical REIT Inc. (GMRE) Financial Health: Key Insights for Investors.

Growth Opportunities

You want to know where Global Medical REIT Inc. (GMRE) is going, and honestly, the story for 2025 is less about massive expansion and more about a strategic cleanup and optimization that sets up real growth later. The near-term opportunity is in their execution of a focused capital recycling strategy, not just chasing volume.

The company's future revenue growth is projected to be steady, with a consensus Wall Street estimate putting their full-year 2025 revenue at approximately $147.86 million. This isn't explosive, but it's built on a bedrock of resilient healthcare demand. Their growth in existing properties, measured by Same-Store Cash Net Operating Income (NOI), was a healthy 2.7% in the third quarter of 2025, showing their current portfolio isn't just sitting still. For investors, the key earnings estimate is Adjusted Funds from Operations (AFFO) per share, which the company narrowed its full-year 2025 guidance for to a range of $4.50 to $4.60. This guidance reflects the one-for-five reverse stock split completed in September 2025, which is an important detail for comparing share prices.

Here's the quick math on their growth drivers:

• Strategic Acquisitions: They are disciplined buyers. In the first half of 2025, GMRE completed a five-property portfolio acquisition for $69.6 million, securing it at an attractive cap rate (initial yield) of around 9.0%. This focus on high-yield, below-replacement-cost assets is a smart move in a high-interest-rate environment.
• Portfolio Optimization: They are selling non-core properties to fund better ones. In Q3 2025 alone, they completed five dispositions, generating proceeds of $13.4 million at a lower cap rate of 7.0%. This capital recycling frees up cash to pay down debt or reinvest in higher-growth properties, which is defintely a value-add.
• Organic Rent Upside: Management is targeting properties where current rents are about 30% below market rates. As those leases roll over, the rent resets create a powerful, built-in organic growth engine that doesn't rely on new acquisitions.

The core competitive advantage for Global Medical REIT Inc. is simple: they specialize in medical office buildings (MOBs) and inpatient rehabilitation facilities (IRFs) with a stable tenant base. As of September 30, 2025, their portfolio occupancy was strong at 95.2%, and critically, 90% of their tenants are health systems or affiliated healthcare groups. This provides a much-needed layer of stability and creditworthiness, insulating them from broader economic volatility. Plus, the macro tailwinds of an aging US population and rising construction costs that limit new supply work in their favor.

Their strategic initiatives in 2025 have been heavily focused on balance sheet discipline, including a $50 million common stock repurchase program announced in August 2025. This signals management believes the stock is undervalued. The refinancing of their debt, including a $350 million term loan due in 2026, is a crucial near-term action that will determine their cost of capital and future acquisition capacity. You can dive deeper into the full financial picture in Breaking Down Global Medical REIT Inc. (GMRE) Financial Health: Key Insights for Investors.

The table below summarizes the core financial metrics driving their growth narrative:

The next step is to watch the execution of the debt refinancing and the pace of asset sales; those actions will directly impact the capital available for accretive acquisitions in 2026.